Labour act amendment: Call for Special provisions for export-oriented industries

Sat, Jan 21, 2012 12:00 AM on Others, Others,

KATHMANDU, JAN 21 -

The private sector has sought a special provision in the proposed Labour Act for export-oriented industries such as tea, jute, carpet, ready-made garment and handicraft.

They have said the upcoming Labour Act should ensure a harmonious relationship between employers and employees instead of concentrating only on employees’ interests.

Speaking at an interaction organised to review the draft of the proposed Act on Friday, representatives of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) asked the government to draft the Act in such a way that it could bolster the confidence of the entire private sector.

In the programme, Pashupati Murarka, the chairman of Employers’ Council at the FNCCI, questioned the government’s definition of formal and informal sectors. “Does the state have the capacity to enforce the labour law both in formal and informal sector? If so, what is the definition of informal sector?” he asked. He also urged the government to introduce a special mechanism to guide the informal sector and said the upcoming Act should be applicable only for the formal sector.

The FNCCI also asked the government to include provisions whereby workers will not be given remunerations for both legal and illegal protests. The draft Act, however, has stated that no remuneration should be given in case of illegal protests; while in case of legitimate one, 50 percent of the remuneration should be given to the workers.

“The employer has to bear the loss when the operation of the industry is halted due to legal or illegal protests. And why should remuneration be given for the time when the industry itself has suffered loss?” asked Murarka.

At the interaction, industrialists and businessmen said the draft has no provision on creating labour flexibility in the country. According to them, the Act must include provisions of contract, daily wage-based work, piece rate and outsourcing if labour flexibility has to be ensured.

“If the Act is brought in ignoring the practices that are widely implemented abroad, the labour flexibility as expected can never be achieved,” said Manish Agrawal, vice-chairman of the Employers’ Council.

The entrepreneurs also asked the Labour Ministry to include a provision of probation period in the new labour law.

They demanded that employers should be given a chance to appoint any worker for a probation period for at least six months while hiring for the first time.

Responding to the private sector’s concerns and recommendations, Minister for Labour and Transport Management Sarita Giri said the ministry will begin its homework to introduce both worker and employer-friendly provisions in the Act.

Source: Kantipur